Spot Ethereum ETFs, which had a successful performance on the first day, turned negative on the second day due to the outflows in the Grayscale ETF.
In response to these outflows, the Ethereum price has decreased by 8.1% in the last 24 hours. While the decline in Ethereum was thought to be a classic sell news event, ETH analysis came from 10X Research founder Markus Thielen, known for his successful predictions.
Ethereum (ETH) May Be the Weakest Link!
Stating that the initial excitement surrounding the Ethereum ETF launch has dissipated and the ETF launch has historically turned into a “news sell” event, Thielen pointed out that this situation has previously occurred in December 2017, April 2021, October 2021, January 2024.
Stating that more positive catalysts are needed for the cryptocurrency rally to be sustainable in the current environment, Thielen claimed that Ethereum (ETH) may be the weakest link in the rally.
The analyst said Ethereum looks vulnerable under current market conditions and indicators such as new user growth and revenue paint a negative picture for Ethereum.
Thielen stated that if the market gains momentum, Ethereum could test the $3,400 resistance and potentially go as high as $3,730 in the coming weeks, but if the downward trend continues, ETH could fall to the critical support level of $3,000 within this month.
The analyst recently discussed the spot ETH ETF launch and Mt. He warned that the combination of Gox refunds could put downward pressure on the cryptocurrency market and a decline could occur.
Rise in Ethereum is a Matter of Time!
Apart from Markus Thielen, popular analyst Michael van de Poppe, who is closely followed by investors, also evaluated the ETF launch and decline.
Stating that there was a sell the news event in ETH like Thielen, Poppe claimed that the rise in ETH was only a matter of time.
Considering that Ethereum ETF flows are more positive compared to Bitcoin ETF flows, Poppe argued that the impact of this flow on the Ethereum price will be enormous.
At this point, Poppe claimed that the ETH price could double and rise from $3,500 to $7,000.
“The impact of this influx in ETH ETFs on the price movement of Ethereum will be tremendous, as we saw the price of Bitcoin rise from $25,000 to $75,000 in the following months.
What can we expect from the Ethereum ETF? “There may probably be a price increase from $3,500 to $7,000-7,500.”
Stating that there was a significant outflow in the Grayscale Bitcoin ETF and that investors also sold after these outflows, Poppe said, “5% of the Grayscale Ethereum Trust has already been sold. Also, considering that ETH sales will not be as much as in Bitcoin, within 1-2 weeks “I predict the markets will rebound upwards.” said.
*This is not investment advice.
